
Successful investing in the long term essentially means maximizing returns given your risk appetite. Markets can be volatile at times and the best performing asset class, market and sector rotates. As such, it is important to diversify your assets in a well-constructed portfolio which could help you to achieve your investment goal. Many investors tend to ignore the importance of investing holistically on several different types of investments that complement each other well. They tend to invest in individual products as long as they find the returns and risks reasonable.
Our view is that it is important to diversify and invest into different investments and asset classes. For instance, bonds tend to have low or negative correlation with equities, which means that adding bonds to an all equity portfolio will help to reduce risk and possibly improve the risk-return ratio of the portfolio.
DBS Bank, in collaboration with Morningstar Associates LLC (“Morningstar Associates”) offers uniquely “Asian-centric” asset allocation model portfolios which aim to meet different investment objectives through the Invest.Wise newsletter. The Invest.Wise Newsletter provides an insight on how an investor can allocate their monies into a portfolio coherent with DBS Bank views on the various asset classes. In addition, the newsletter also provides a quarterly “Funds Select List”, extensively screened through by Morningstar Associates, which provides a diverse choice of funds to include in your investment portfolio.
Click on the links below to find out more about investing prudently through a structured asset allocation approach.